Shares snapped a three-session winning streak to end lower yesterday, as concerns over a buildup in the inventories of chipmakers' customers drove the electronics sector down, analysts said.
The TAIEX closed down 21.06 points, or 0.4 percent, at 5,965.70. Decliners outnumbered gainers 437 to 304 and 218 issues ended steady. Turnover dropped to NT$65.24 billion (US$1.95 billion) from NT$97.95 billion on Tuesday.
"A lot of bears are selling electronics shares based on downbeat speculation about the second half, although so far [revenue and economic] numbers look strong," said Mike Chow (周道中), a manager at Yuanta Core Pacific Capital Management (元大京華證券).
Contract chipmakers were among the bears' victims on concerns a buildup in some customers' inventories could affect their third-quarter revenue.
Taiwan Semiconductor Manu-facturing Co (
Shares in China Steel Corp (中鋼) dropped about 1 percent to NT$30.30 on profit-taking, analysts said. China Steel had jumped 3 percent on Tuesday after lawmakers passed a resolution requiring the government to maintain a minimum stake of 20 percent in the company.
Flat-panel makers were see-sawing yesterday, as some investors bought them on strong May revenue data while others sold on concerns there might be an oversupply of the panels in the second half of the year, analysts said.
AU Optronics Corp (
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